31) A manager will have the least confidence in an explanatory variable that
A) does not pass the F-test. B) is expressed as a dummy variable. C) does not pass the t-test. D) constitutes only a small part of R2.
32) From a management policy perspective, which regression result is the most useful?
A) a regression equation that passes the F-test B) a regression equation whose explanatory variables all pass the t-test C) a regression equation that has the highest R2 D) a regression equation that has the least number of dummy variables
33) The fact that a person with a forceful and persuasive personality but not necessarily the greatest amount of knowledge and judgment can exercise a disproportionate amount of influence is a major drawback of
A) the Delphi method of forecasting. B) the market research method. C) opinion polling. D) the jury of executive opinion approach.
34) The forecasting technique, which predicts technological trends and is carried out by a sequential series of written questions and answers is
A) the Delphi method. B) the market research method. C) opinion polling. D) the jury of executive opinion approach.
35) Average weekly claims for unemployment insurance, money supply and the index of stock prices are all examples of
A) leading indicators. B) coincident indicators. C) lagging indicators. D) None of the above.
36) One of the series included among the lagging indicators is
A) the change in sensitive material prices. B) the index of industrial production. C) employees on non-agricultural payrolls. D) average duration of unemployment.
37) The following is not one of the leading indicators:
A) index of consumer expectations, U. of Michigan. B) change in consumer price index for services. C) vendor performance, slower deliveries diffusion index. D) manufacturers’ new orders, nondefense capital goods.
38) Which of the following is a leading economic indicator?
A) average hours, manufacturing B) money supply M2 C) stock prices, 500 common stocks D) All of the above.
39) The method of forecasting with leading indicators can be criticized
A) for occasionally forecasting a recession when none ensues. B) for forecasting the direction of the economy but not the size of the change in economic activity. C) for frequent revisions of data after original publication. D) All of the above.
40) A general rule of thumb is that if, after a period of increases, the leading indicatorindex sustains ________ consecutive declines, a recession (or at least a slowing of the economy) will follow.
A) three B) four C) five D) six